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A Primer on Macau - the Orient's Las Vegas

Âthe Atlantic city have been shut down. The
Trump Marina Hotel Casino had the biggest
Macau's economy is based on tourism anddecline $11.8 million and recently Trump
gambling, much like its counterparts in thedecided to sell this away as well. New
US - Las Vegas and Atlantic City. Thesecasinos have started coming up though and it
three places, combined generate more revenueis unclear at this time what the future of
just from gambling than the total market capAtlantic  City  would  be.
of Bank of America and US Bank combined, in
fact  they  don't  even  come  close.Overall revenue casinos dropped 2.9% compared
with 2006, but the decline in slots revenue
Here, we look at the key statistics at thewas even sharper at 7.2%. The smoking ban,
"terrific  three"  gambling  hubsState imposed additional taxes, competition
from casinos in neighboring states and the
Âoverall economic slowdown contributed to the
slowdown. Despite these losses, Atlantic
Las  VegasCity generated $4.94 billion in gambling
revenues in 2007, still a very strong number
In Las Vegas has long been the world'sin the US. With new casinos coming up and the
gambling hub. High end casinos, unparalleledclosure of the old loss-generating ones,
service and a large variety of entertainmentAtlantic City seems to be poised for a
options have kept tourists coming back tocomeback.  Only  time  will  tell.
Vegas year after year. Leading properties
include casinos run by MGM Mirage Inc.,Macau
Harrah's Entertainment Inc., Las Vegas Sands
Corp  and  the  Wynn  Resorts  Ltd.Gambling revenue in the enclave totaled 55.9
billion patacas in 2006, which includes
At close to $6.5 Billion in gambling revenueslottery and racing revenues although the
in Las Vegas alone and $12 billion total inbooming  bulk  came  from  casino  floor.
the state of Nevada which includes the city
of Reno, a smaller gambling hub, it is stillThis may exceed the 6.2$billion generated by
arguably the world's largets gamblingLas Vegas strip. Gambling revenue in the
location, even though Macao has exceeded Lasenclave totaled 55.9 billion patacas ($6.95
Vegas in the last year or so as the world'sbillion) in 2006. VIPs related revenue was
largest  gambling  hub.higher but the mass market was slightly
lower.
Las Vegas overall economy, which includes
revenue from tourism, gambling, entertainmentAt the end of 2006, Macau had 24 casinos
and a host of other smaller businessesoperating 2,762 gaming tables and 6,546 slot
including conventions, revenue has beenmachines. In the beginning of the year 2007,
increasing 6.5% year after year and is aboutwith the increase in the gambling revenue by
$110 billion now and is expected to reach22% reaching US$ 6.95 billion, Macau would
$155 billion in 2012. No other location comeshave dethroned Las Vegas to emerge as the
even  close  to  that  number.world's  #1  gambling  destination.
2008, however, has been slower than usual,The success story of Macau may be due to the
primarily due to the overall economicfact that the visitors from the nearby areas
slowdown in the US due to the subprimein mainland China show more interest towards
mortgage  crisis.gambling compared to the Americans in Las
Vegas, whose people aren't that interested in
Atlantic  Citygambling  in  general.
Atlantic City's has11 casinos and has beenMacau, the only place in China where the
the second biggest gambling hub in the US forgambling is being made legal is within the
several decades. Research studies howeverreach of three billion people which positions
show that 2007 will be the first year for theit well for further growth, much better than
drop in revenue, because of the toughLas Vegas and Atlantic City. It is already
competition  in  the  gambling  industry.the world's largest gambling center by volume
and may soon become the largest by revenues
Many of the old casinos that were there inas well.



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